Daily Pivots: (S1) 0.8660; (P) 0.8690; (R1) 0.8724; More…
Intraday bias in EUR/GBP remains mildly on the upside for the moment. Upside moment remains unconvincing. But further rise is still expected to 0.8851 resistance and above. Price actions from 0.8303 are viewed as the second leg of the correction from 0.9304. Hence, we’d expect strong resistance from 100% projection of 0.8303 to 0.8851 from 0.8402 at 0.8950 to limit upside. On the downside, below 0.8655 minor support will turn bias neutral again. But further rise would remain in favor as long as 0.8546 support holds.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. Deeper fall cannot be ruled out yet. But we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Overall, the corrective pattern would take some time to complete before long term up trend resumes at a later stage. Break of 0.9304 will pave the way to 0.9799 (2008 high).
